America Movil (AMX) Q2 Earnings Rise Y/Y, Revenues Fall
America Movil, S.A.B. de C.V. AMX reported net income per ADR of 46 cents for second-quarter 2023, up from 21 cents reported in the prior-year quarter.
Net income in the June quarter was Mex$25,875 million or Mex$0.41 per share compared with Mex$13,683 million or Mex$0.21 per share in the year-ago quarter.
The company had a comprehensive financing cost of Mex$2,104 million, down 88.1% from the year-earlier quarter’s comprehensive financing costs of Mex$17,614 million.
America Movil, S.A.B. de C.V. Unsponsored ADR Price, Consensus and EPS Surprise
America Movil, S.A.B. de C.V. Unsponsored ADR price-consensus-eps-surprise-chart | America Movil, S.A.B. de C.V. Unsponsored ADR Quote
Revenues
Total quarterly revenues decreased 4.6% to Mex$202,532 million due to poor performance in the Service and Equipment business segment.
Service revenues were Mex$169,206 million, down 4.2% year over year. Equipment revenues totaled Mex$31,103 million, down 7.5%.
America Movil gained 2.2 million wireless subscribers in the first quarter. This figure includes 1.5 million postpaid subscribers. Brazil, Austria and Colombia were the primary contributors to postpaid subscriber growth. The company had 303 million wireless subscribers at the second-quarter end.
On the fixed-line, Broadband and Television platforms, the company ended the quarter with 73.4 million revenue-generating units.
The telco operates in multiple regions, namely Mexico, Brazil, Colombia, Peru, Ecuador, Argentina, Central America, the Caribbean, Austria and Other European countries.
Of these countries, Peru witnessed a year-over-year revenue decline of 0.9% to 1,584 million Soles. The downtick was driven by lower equipment and wireless revenues.
Argentina’s revenues came in at ARS 111,881 million, down 6.2% from the year-ago quarter. The downside was caused by declining service, fixed lines and wireless revenues. The reported data for Argentina are presented in line with IAS29, reflecting the implications of inflationary accounting, as the Argentinean economy is projected to be hyperinflationary for the second quarter of 2023. The company also stated that Argentina would be left out of all comparisons for consolidated data at constant exchange rates to maintain consistency.
Colombia’s revenues increased 2.8% to COP 3,792 billion, owing to an increase in service revenues and fixed-line revenues.
Revenues from Mexico, Brazil, Ecuador, Central America, Austria and Other European regions witnessed year-over-year growth of 3.6%, 7.6%, 1.9%, 5.9%, 3.9%, and 11%, respectively. Revenues from the Caribbean were constant.
Other Quarterly Details
Total costs and expenses were Mex$123,833 million, down 5.1% from the year-ago quarter. Overall, EBITDA decreased 3.8% from the prior-year quarter to Mex$78,699 million. The EBITDA margin came in at 38.9% compared with 38.5% in the year-earlier quarter. The company’s operating profit decreased 2.8% to Mex$40,308 million.
Liquidity
As of Jun 30, 2023, America Movil had Mex$120,238 million in cash, marketable securities and other short-term investments with Mex$318,350 million of long-term debt.
The company has also approved a share-buyback fund for Mex$20 billion between April 2023 and April 2024.
Zacks Rank & Other Stocks to Consider
America Movil currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology space are InterDigital IDCC, Badger Meter BMI and Woodward WWD. InterDigital sports a Zacks Rank #1 (Strong Buy), while Badger Meter and Woodward carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for InterDigital’s 2023 earnings per share (EPS) has increased 62.6% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 52% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 1.1% in the past 60 days to $2.72.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have surged 81.3% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 3.8% in the past 60 days to $3.58.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 12% in the past year.
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